Dealing with a debt collector can be a frightening and stressful experience, but you never have to put up with abuse. Credit card debt collectors have the right to contact you to demand payment from you and even sue you, if necessary. Federal law, however, governs the exact type of actions collectors can take and specifies your rights in a debt collection situation.
What Creditors and Debt Collectors Can Do
The Fair Debt Collection Practices Act (FDCPA) is the federal law that directs how and when debt collectors can contact you. They are free to contact you between the hours of 8 a.m. and 9 p.m. The person who calls you from a collection agency has to give you his or her name and the name of the agency. They can sue you and report negative information on your credit report. They can also review your credit report. Collectors can also contact others in an attempt to get your contact information if they don't have the ability to contact you directly.
What Creditors and Debt Collectors Cannot Do
Debt collectors cannot contact you at work if you tell them not to. They may not harass you, lie to you, use obscene language when they talk to you, disparage your character, make religious or ethnic slurs or employ any other unfair tactic while trying to collect the debt. They also cannot contact you if you send them a written request to stop contact. The one exception is that they may contact you one more time to let you know what actions, such as a lawsuit, they intend to take. They cannot attempt to trick you into accepting collect calls or paying for telegrams. They can't pretend to be an attorney or law enforcement agency; although some attorneys collect debts. They cannot send you papers that look like legal papers but in fact are not. They cannot state that you have committed a crime. They cannot threaten to have any public assistance cut off.
What Constitutes Harassment
Debt collectors who threaten you with violence are harassing you and you have rights to protect yourself from such abuse. It is harassment if they publish or publicly air your name in a list of people who have not paid their debts. Using profane language and making certain types of phone calls to annoy you are forms of harassment. Discussing your account with a third party is harassment.
Your Rights
The Federal Trade Commission (FTC) enforces the FDCPA. The FDCPA applies only to agencies that are collecting debts on behalf of others. Some states have laws that apply to in-house debt collectors.
During the first call, you can tell the collector you want all future contact only in writing. You can also tell the collector to never phone you at work and to contact only you regarding this debt, unless you have an attorney.
If you choose to speak to the collector, you have the right to request a full accounting of how the amount due was determined, including the original amount owed and the interest and any fees that have been tacked on. You cannot be charged more than the law allows.
If you strike a deal regarding the debt, you can request that the collection agency send you a letter explaining the terms of the agreement.
You can sue the debt collector for violating the terms of the FDCPA. You could be entitled to up to $1,000 in damages and legal fees.
Report Harassment and Seek Help
If a debt collector harasses you, you have legal recourse. Report the harassment to your state attorney general's office. If you have any additional questions about your protection under the Fair Debt Collection Practices Act, contact the Federal Trade Commission for assistance at 1-877-FTC-HELP (1-877-382-4357). Military members have additional legal protections and should contact their local Judge Advocate General's office for help with a collector.
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